Sectors Moving in Different Directions

Includes: IYH, PMR, XHB
by: Jeff Pierce

Every weekend I pour over 150 sector charts for signs of unusual strength or weakness in an effort to determine which areas I want to focus my attention on. I like to use the 60 minute chart to really drill down to see what’s really going on. Sometimes you can glean a bit of insight by which sectors are outperforming or under-performing the indexes, in an attempt to see where the markets might be heading.

With the SOX being as strong as it has been of late, it’s no surprise the Nasdaq is outperforming the other major indexes, but I just can’t see this trend lasting much longer. (Click on all charts to enlarge)

Recent big winners are FCS DIOD SWKS POWI TQNT

NKE & FL have been thriving in a bad economy?

The housing sector continues to under-perform.

Pharma has been a dog lately. It may find support at its 200dma, but I wouldn’t really bet on that with the majority of the ema’s I watch pointing down.